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China Manufacturing Competitiveness will overtake by United States in 2020

Foreign media said the survey shows that China's manufacturing competitiveness, although ranked first, but still faces rising labor costs, challenges such as an aging population, it is expected that manufacturing competitiveness will overtake by United States in 2020.

Eco innovation is a competitive advantage

Rankings, China ranked first manufacturing competitiveness. The report said, not only because of their traditional cost advantage, but also because China is developing its own successful innovation ecosystem.

But the report also pointed out that China's R & D spending increased significantly, every year a large number of graduates in science and engineering talent, and very focus on technology commercialization and strong growth in venture capital investments.

But the report warned that the economic downward pressure on the larger context, China's manufacturing industry is facing a series of challenges. Due to a drop in demand caused by industrial activity continued to decline, leading to factory overcapacity. Manufacturing gross domestic product (GDP) has dropped, most of them turned to the service sector.

Labor costs up to five times for 10 years

It reported that manufacturers are worried about rising labor costs. Since 10 years since 2005, China's labor costs rose fivefold, due to rising labor costs, such costs between China and developed economies arbitrage decline, some developed economies, companies have to shift their production costs, compared to countries with low or move back to their country.

Population aging is another problem for manufacturers plan to invest in China to worry about. The report notes that by 2050, China may be increased to raise the proportion of older triple. The report recommends, in spite of competitive landscape will continue to change, but high-quality talent will always remain the first list of the drivers of competitiveness, so only continue to cultivate leading enterprises and advanced manufacturing needs of high-value talent, enhance innovation capability and efficiency of supervision the State in order to maintain prosperity.